Sorry for your loss. Getting the information return F 1099R brought back memories of death. By receiving the F1009R from the insurance company shows that you received a death benefit from something other than a life insurance policy such as an annuity product. With something other than a life insurance product some of the proceeds are taxable to you.
As for the RMD - the tax laws require tax advantage products such as annuity products or a IRA to have withdraws based on the age of the owner after your reach 70 1/2 to now 73 years old. This distribution is the required minimum distribution or RMD. So now everyone over 73 years old that has one of these tax advantage products is required to take such distribution based on an IRS table.
In your case was the person you received the payment over 73 years old? if so mark the box yes because the person if they were still alive would have been required to take a RMD. If they were younger there would have been no requirement for a RMD. Checking the box yes or no will not increase or decrease your taxes on the amount you received.
Hope this helps. You may want to reach out to the insurance broker that handled the death claim if you need more information about the RMD.
